[WSBAPT] Unring a SNT Bell??

[Paul Neumiller]

Is it possible to unring a SNT bell?  Wife dies and her reciprocal Will
distributes everything to a Special Needs Trust on behalf of surviving
husband (his Will does the same thing).  He is selected as the Personal
Representative of her estate and I am probating her Will.  Thing is, he's
not disabled and doesn't want to hassle with going to his eldest son
(trustee of the trust) to get money.  Modest estate of less than $500k.
Terms of testamentary trust says upon husband's death, remaining assets in
SNT go to adult children.  Almost all of the estate's value is wrapped up in
the equity of the family residence.  

 

1.       Why did their estate planning attorney put them into testamentary
SNTs?  Is this a plan to preserve estate assets just in case there is a
catastrophic illness and the family wants to use government benefits (SSI
and Medicaid) instead of family assets??  Does this even make sense when the
value of the Decedent's estate will be one half of the equity of the family
residence?

2.       If the family is willing, can the family overturn the SNT by
entering into a TEDRA agreement to terminate (or not activate) the SNT?  

3.       If yes, must all the residual beneficiaries (all of the adult
children) need to sign off?  Father is hesitant to have to get all of his
kids signatures if it isn't necessary?

 

Thank you for your guidance and help.  

 

 

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